Does Smith & Wesson Stock Have a 50% Jump In Its Crosshairs?
As new firearms sales in the U.S. continue to strongly overshoot previous years' figures, Smith & Wesson Brands, Inc. (NASDAQ: SWBI) attracted a highly positive analyst upgrade today. The gun maker won a revised price target of $27 from investment bank Lake Street Capital Markets, representing a 55.6% upside over today's $17.35 share price at market close. The firm's rating on Smith & Wesson is still "Buy."
The research note accompanying the upgrade notes that several metrics outpaced Lake Street's expectations. The note says the firm is "most encouraged by the higher-than-expected gross profit margin of 40.2% which compared favorably to our 32.5% estimate," continuing on to remark how margins have climbed to "peak levels and we think are sustainable for the next several quarters as the company attempts to meet demand and refill the depleted channel inventory."
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Source Fool.com
